While eating my bagel and drinking my coffee this morning I was reading that one of the changes coming out of the stimulus package was that penalty for early withdrawal of money from your 401k has been suspended. So now you can take money out of your 401k and only pay the taxes on it.
I'm probably going to leave mine in and count on the recovery that I feel certain is going to happen and it will be a robust recovery.
However I also wonder if it might not be a bad idea to pull some out and invest in real estate.... Or toilet paper, booze and cigarettes.
The only thing is, if you pull some out now, you lock in your losses.
I just thought it was an interesting development, and the sad thing about it is that some people will pull a bunch out and totally screw up their retirement.
